(Bloomberg) -- Bonds from Puerto Ricos record $3.5 billion general-obligation sale accounted for one-third of the tradingvolume of the entire $3.7 trillion municipal market on the day of their issue.
Underwriters led by Barclays Plc priced the tax-free bonds on March 11 to yield 8.73%, or 93 cents on the dollar. It was the biggest junk-rated deal in the municipal markets history. Hedge funds were the majority of buyers, with traditional muni investors also participating, said David Chafey, chairman of the Government Development Bank, which handles the commonwealths debt sales.
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